Message from the CEO

We are firmly committed to creating corporate value
— so that we can earn true value among our shareholders and a wide range of other stakeholders

President and CEO,
Representative Corporate Executive Officer

Toshihide Endo

New Corporate Philosophy

Sony Financial Group Inc. (SFGI) is scheduled to be listed on the Prime Market of the Tokyo Stock Exchange on September 29, 2025. For the Sony Financial Group (Sony FG), which is striving for further growth, the partial spin-off from Sony Group Corporation and the accompanying listing represent a once-in-a-lifetime opportunity — a crucial juncture akin to a “second founding.”

As a banner heralding this “second founding,” Sony FG has established a new corporate philosophy framework, adopting “Pursuing lives filled with emotion, together” as our Vision. In addition to embracing the Sony Group’s key principle of Kando (emotion), this Vision expresses our desire, as a financial group dedicated to supporting people, to continue to support our customers in living true to themselves. In addition to “Health for Life,” to live with energy and vibrance, and “Asset for Life,” to live with financial well-being, we define “Kando for Life,” a foundation for our customers to live their own lives filled with emotion. By staying close to people through these three “for Life” concepts, Sony FG will continue to be a supportive presence for its customers through both the joys and uncertainties in their lives, and thereby sustainably increase corporate value.

Sustainability

Progress of the Mid-Range Plan: Towards Realizing a Vision Befitting a “Second Founding”

Our current three-year Mid-Range Plan, which began in FY2024, is now in its second year. This plan has been designed through backcasting from our target vision for FY2030, and is based on the dual strategies of “exploitation” and “exploration” as part of ambidextrous management.

Progress of the Mid-Range

In the first fiscal year of the plan, we worked to improve financial soundness while each Group company recorded solid performance in existing businesses through “exploitation.” As for “exploration,” looking to grow as a group we launched various initiatives focused on our growth strategy centerpiece, the expansion of our customer base. For example, in November 2024, we began a business partnership with M3, Inc., which operates a medical information platform, in order to provide greater value to corporate and affluent customers. Starting with services offered at Hoken Seisakusho, operated by Sony Life Communications, we plan to roll out services to primarily support corporate customers pursuing KENKO Investment for Health initiatives, and then gradually expand these to the Group as a whole. In December of that same year, we made justInCase Co., Ltd. – a leading InsurTech company specializing in small-amount, short-term insurance – a wholly-owned subsidiary of SFGI. This acquisition enabled us to swiftly enter the small-amount, short-term insurance business, where we aim to build connections across new customer segments by enhancing flexibility in product development. Through these initiatives, along with the provision of new products and financial services, we will expand Sony FG’s customer base.

Following the listing, which marks the midpoint of the Mid-Range Plan, we will work to generate stable cash flow and actively return profits to shareholders. For FY2026, the final year of the current Mid-Range Plan, we are targeting consolidated adjusted net income of ¥125.0 billion and consolidated adjusted ROE of 10% or more, based on IFRS. Ultimately we aim to restructure the portfolio at Sony Life, build a management structure that consistently generates stable profits, and achieve a transformation worthy of our “second founding.”

Numerical Management Targets of Mid-Range Plan

Sony FG’s Vision for FY2030

Looking ahead to FY2030, we aim to achieve consolidated adjusted net income of over ¥170.0 billion on an IFRS basis across all existing businesses, centered on profit growth at Sony Life.

A critical element for Sony FG’s further growth is deeper collaboration with the Sony Group, anchored in two key pillars: brand and technology. As to the first of these, we will continue using the Sony brand even after the partial spin-off, while also leveraging the Sony Group’s IP and entertainment assets to strengthen branding. On the technology front, meanwhile, we will harness the Sony Group’s technological strengths to enhance the value we deliver to customers. Looking ahead to FY2030, in addition to expanding existing businesses, we will work to drive growth through Group-wide provision of new value, acceleration of growth investments including M&A, and entry into new domains.

Sony FG’s Strengths

Sony FG has four strengths, outlined below.

1. A value-creating financial group that carries on the founding spirit of Sony

Sony FG has grown by building a unique business model centered on the customer, free from traditional industry norms. This culture is rooted in the philosophy of Sony founder Akio Morita, who championed the spirit of contributing to society by “doing what others don’t.” Our core company, Sony Life, has long provided tailor-made insurance solutions through consulting-based sales — as opposed to product-driven sales — delivering new value to customers and transforming the industry. Sony Assurance was the first in Japan to introduce dynamic pricing via an internet channel. Sony Bank has led the way in digitizing banking procedures. These examples illustrate how our businesses have created new value by building innovative business models.

Sony Life, the nucleus of Sony FG, boasts high productivity across its Lifeplanner and agency channels, as well as a robust customer base centered on families and small businesses. Sony Assurance holds the No. 1 share^* in direct auto insurance thanks to its strong brand recognition and customer satisfaction. As an internet bank, Sony Bank has developed a steadily growing mortgage loan business and highly convenient foreign currency deposit services.

Note: As of the end of March 2025. Calculated based on direct auto insurance premiums reported by each company in Japan

Life insurance businessNon-life insurance businessBanking business

Going forward, our Group strategy will focus on fusing the core competencies and functions developed across our businesses into Sony Life, where we see the greatest potential for added value, and then utilizing this arrangement to deliver value as a group. Specifically, we will integrate such core competencies as Sony Assurance’s outstanding brand power and customer acquisition capabilities, and Sony Bank’s asset circulation foundation, into cross-Group offerings. In this way, we will operate as a single unified Group, jointly launching products and services across the Group while taking on the challenge of creating new financial services.

Approach to the group strategy of the Sony FG

2. Sony Life, which has top-class competitive sales channels in Japan at its core, is the value driver

Sony Life continues to enjoy strong growth in the domestic life insurance industry, with expanding business scale and market share. This growth is driven by the dual sales channels of Lifeplanner sales specialists and agencies. The competitive strength of Lifeplanner sales specialists is a core advantage of the Group and an important source of growth, supported by our selective recruitment, consulting-based sales approach, and full-commission system. Recently, advanced tools such as the GLiP life plan analysis system for individuals and the Biz-Plan WEB consulting platform for corporate customers have provided added value. As a result, productivity per Lifeplanner sales specialist — measured in annualized premiums from new policies per person — is approximately five times the industry average.^*1,^*2 Our agency supporters (Sony Life sales personnel for agencies) not only assist with sales activities by insurance agents, our touchpoints with customers, but also provide broad management support to agencies. Over the past five years, new business value per agency supporter (on an IFRS basis) has nearly tripled.

Amid a shrinking domestic population, the keys to further customer growth for Sony Life lie in: (1) fully utilizing its top-tier sales channels; (2) expanding its customer base, beginning with corporate customers, a segment that has shown remarkable growth in recent years; and (3) collaborating with Sony Assurance, Sony Bank, and Sony Lifecare. Specifically, we will deliver continuous value ranging from entrepreneurs and business owners (our point of contact through corporate services) to family estate succession, pre-senior and senior services, employee benefits, and ultimately to services for entire families. For Generation Z and younger generations, who are difficult to reach through Lifeplanner sales specialists, we will utilize the strengths of Sony Bank and Sony Assurance to secure new touchpoints. Through these approaches, we aim to organically connect customers across all generations and channels, and drive further growth for Sony FG with Sony Life at the center.

Note1: The average of the non-consolidated company-wide figures, including those from channels other than sales personnel, of the following four major life insurance companies in Japan (Nippon Life Insurance Company, Sumitomo Life Insurance Company, Meiji Yasuda Life Insurance Company, and The Dai-ichi Life Insurance Company, Ltd.), based on the results announced by each company

Note2: Annualized based on accumulated figures up until 3Q FY2024

3. A risk profile centered on insurance risk and an ERM strategy

The risk profile of Sony Life, which accounts for the majority of Sony FG’s consolidated economic value-based risk amount, continues to center on insurance risk. Compared to the average of other listed life insurance companies, Sony Life has a relatively high proportion of insurance risk and a lower proportion of market risk. Moreover, market risk includes minimal exposure to equities, and is primarily composed of interest rate risk. In asset management, we will continue to promote asset liability management (ALM) to maintain an appropriate level of soundness, while also working to diversify our investments to achieve risk diversification and capture excess returns.

Up until now, in order to respond to customer needs while addressing ALM-related issues, we have implemented multifaceted initiatives including product development, sales, and asset management. Going forward, we will promote cash flow matching to align future cash flows of assets and liabilities by maturity zone. Specifically, we will work to further advance ALM through initiatives such as curbing ultralong-term liability cash flows, accumulating insurance liabilities within 40 years, and asset side approaches.

Sony FG’s group consolidated ESR (the ratio of economic value-based capital to economic value-based risk amount) continues to transition within the target range, even amid rising interest rates, due to our careful implementation of various financial foundation enhancement measures. Going forward, we will continue to aim to raise the ESR level by accumulating economic value-based capital through the acquisition of new policies at Sony Life, and by engaging in risk reduction measures such as bond sales, and the use of derivatives and reinsurance. We will endeavor to strengthen financial soundness so that ESR can be maintained at the target level even when interest rates fluctuate.

SonyFG ERM・ESR

4. Stable shareholder returns

In conjunction with financial soundness being enhanced to some extent through initiatives undertaken in FY2024, we revised the target range for Sony FG’s group consolidated ESR and lowered the upper limit from 235% to 215%. As the basic policy for shareholder returns after listing, we will allocate 40% to 50% of IFRS adjusted net income to dividends. In principle, we will not reduce the annual dividend per share and will aim for stable dividend growth. For FY2025, which will be the first fiscal year after listing, the total year-end dividend amount is planned to be ¥25.0 billion for the half-year, equivalent to ¥50.0 billion on a full-year basis. In addition, with the goal of mitigating the impact on supply and demand for the Company’s shares and improving capital efficiency, we plan to repurchase shares in the amount of approximately ¥100.0 billion over the one-and-a-half year period from listing through the end of March 2027.^*

Note: Depending on market environment, laws, regulations or exchange regulation, or other factors, it is possible that no share repurchase, or a share repurchases of only a portion will be carried out

Looking toward Listing